Differences between Transfer Transactions and Remittance Transactions

Differences between

Transafer Transactions	Remittance Transactions
1. Refers between different units  in same Railway, different Zonal  Railways in Indian Railways and between Capital and Revenue accounts.	1. Refers between Railways and other Govt Depts (Defence, Postal etc) & State Govts.
2. Heads operated: Transfer Divisional, Transfer Railways, Transfer Railway Revenue & Transfer Railway Capital.	2. Heads operated: PAO Suspense, AG Suspense, M-Remittances, Reserve Bank Suspense.
3.  The adjustments are made through issue and acceptance of Transfer Certificates between Accounting units in same Railway or between two Zonal Railways.  Also operation of contra transactions, for transfers between Capital and Revenue accounts.	3. The adjustments are made through issue of Advice of Clearance by the various Accounts Officers and memo of clearance by RBI.
4. Clearance: Through book adjustments (by preparing Journal entries) within Railways itself.	4. Clearance: Adjustments through Reserve Bank of India by operation of Deposit with RBI Account or Cheque Payments.

PAO Suspense / AG Suspense

PAO Suspense / AG Suspense

«  Full form: Pay & Accounts Officer Suspense / Accountant General Suspense

«  Source: Chapter 4 of Accounts Code (Para No. 457 A)

«  It is one of the Suspense Heads operated in Indian Railways in respect of its transactions with other Central Govt Depts/State Govts.

«  For the settlement  of inter departmental  and  inter governmental transactions (other than defense and postal) arising in the  books of  Railway  Accounts Offices, PAO  suspense/AG suspense  head is operated.

«  Pay and Accounts officers / Accountant Generals will not settle transactions with railways through the Reserve Bank and vice-versa. All their dues will be paid/received at weekly intervals on cash basis i. e., by cheques or Government drafts.

«  Journal entries of PAO/AG

1) When a Claim is preferred 

                                PAO/AG Suspense        Dr.               xxxx

                                                To Service Head/Earning Head    Cr              xxxx

( Claim is preferred on Central Govt Dept or State Govt for rendering services to them by Railways)

2) On receipt of Cheque/Demand Draft

                                Remittance Into Bank A/c      Dr                  xxxx

                                                To PAO/AG Suspense          Cr                      xxxx

(On Receipt of Cheque/Demand Draft and cleared the PAO/AG Suspense Head)

«  The balance under this  head is  exhibited on  the Liabilities  Side of the  Balance Sheet of Indian  Railways. 

Remittance Transactions @ Indian Railways

Transactions Between Railways & other Govt Depts	Outward	Inward	Remarks
Cash	PAO Suspense	PAO Suspense	All Depts in Central Govt (except Postal & Defense)
Cash	AG Suspense	AG Suspense	State Governments
Adjustments through RBI	M - Remittance	Reserve Bank Suspense	Postal & Defense

«  For article on Reserve Bank Suspense - Click here

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